The Securities and Exchange Commission (SEC) said Wednesday it filed a criminal complaint against Bulacan Okay Ukay Direct Supplier for offering investments to the public without a license.
It filed a complaint before the Department of Justice on Oct. 10, accusing the owner of Bulacan Ukay Ukay Direct Supplier of violating several laws, including the Securities Regulation Code (SRC) and the Cybercrime Prevention Act.
The SRC prohibits selling securities without proper registration from the SEC. Violators can face fines up to P5 million or imprisonment for up to 21 years, or both.
The Cybercrime Prevention Act increases penalties for crimes using technology.
The Financial Products and Services Consumer Protection Act (FCPA) classifies misleading investment offers as fraud, while the Anti-Money Laundering Act (AMLA) can also apply, the SEC said.
The complaint follows an entrapment operation by the Philippine National Police and the SEC in Guiguinto, Bulacan on Oct. 9.
They acted on reports that the owner of Bulacan Ukay Ukay was soliciting investments between P2 million and P4 million, promising monthly returns of 7 percent to 10 percent through her Facebook page.
The SEC said investigations showed that she was soliciting investments without SEC registration. The SRC requires registration for selling securities and prohibits fraudulent schemes.
The complaint said that “publicly offering and selling said investment contracts without a license or approval from the SEC is not only illegal per se but would also operate as a fraud or deceit upon any person.”
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